1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Yanka [14]
3 years ago
8

In one year, Hitech Microdevices will pay a common stock dividend of $4.35. You predict that you will be able to sell your Hitec

h stock for $57 per share after 1 year. If you require a rate of return of 16 percent on Hitech stock, how much would you be willing to pay now for a share of the stock?
Business
1 answer:
Andre45 [30]3 years ago
7 0

Answer:

Price to be paid now = $52.89

Explanation:

<em>The Dividend Valuation Model is a technique used to value the worth of an asset. According to this model, the worth of an asset is the sum of the present values of its future cash flows discounted at the required rate of return. </em>

T<em>he stock would be held for just a period, hence we would use the single period return model. This is given as follows:</em>

Price now  = D/(1+r) + P×(1+r)

Dividend , r - rate of return, P -year-end price of stock

Dividend = 4.35, r-16%, P- 57

Price = 4.35/(1.16)  + 57/(1.16)= $52.89

Price to be paid now = $52.89

You might be interested in
why do small-business owners want to determine whether their companies meet the standards for small-business designation? becaus
FrozenT [24]

The small-business owners want to determine whether their companies meet the standards for small-business designation because the government agencies offer benefits designed to help small businesses compete with larger firms.

<h3>Why small business is important?</h3>

A privately held corporation, partnership, or sole proprietorship that employs fewer people and has a lower yearly income than a corporation or regular-sized business is referred to as a small business. Hence by keeping the money close to home and assisting local communities and neighborhoods, they boost local economies.

Small enterprises ensure that local communities pay more in taxes and that the money stays in the community by raising the level of taxation. Additionally, it lowers poverty levels as more people start their own businesses and more people get jobs. 

To learn more about small-business, visit:

brainly.com/question/28289155

#SPJ4

7 0
1 year ago
From the point of view of economics, information systems technology can be viewed as a factor of production that can be substitu
Anna71 [15]

Answer: True

It can be replaced by traditional systems, however, it is not the most appropriate, because information systems help us organize information about a company so that it can be good for reading, analyzing and making decisions, if it does not comply with these principles then we can say that the company is becoming a bit more inefficient.

Traditional systems work, however, in terms of information systems, we can also have the decrease in information errors, so it is important that they be as automated as possible.

3 0
3 years ago
If the Ricardian equivalence theorem LOADING... is not​ relevant, then an​ income-tax-rate cut A. will result in a multiple time
LenKa [72]

Answer:

The correct answer is D. will result in a multiple times higher decrease in equilibrium real GDP in the short​ run; however, a​ tax-rate reduction will increase the​ automatic-stabilizer properties of the tax​ system, so equilibrium real GDP would be less stable.

Explanation:

Ricardian Equivalence is an economic theory that suggests that when a government increases expenses financed with debt to try to stimulate demand, demand does not really undergo any change.

This is because increases in the public deficit will lead to higher taxes in the future. To keep their consumption pattern stable, taxpayers will reduce consumption and increase their savings in order to offset the cost of this future tax increase.

If taxpayers reduce their consumption and increase their savings by the same amount as the debt to be returned by the government, there is no effect on aggregate demand.

The fundamental concept of Ricardian equivalence is that it does not matter which method the government chooses to increase spending, whether by issuing public debt or through taxes (applying an expansive fiscal policy), the result will be the same and demand will remain unchanged.

6 0
3 years ago
During the meeting malcolm constantly reminds the rest of the team that he is in charge of this project, and it must be carried
sattari [20]
Malcom seems to be drawing from COERCIVE source of power. 
Coercive means to be using force or threat in order to make some one to do something. From the scenario given above, it can be seen that, Malcom is using threat in order to make others to be subjective to him concerning the project they are handling.<span />
8 0
3 years ago
Read 2 more answers
Suppose that students at Big University buy season football tickets at the beginning of the fall semester. Everyone expects that
Elena L [17]

Answer:

A) The current supply will shift to the left

Explanation:

The supply curve shifts to the left when the total quantity supplied decreases, which results in a price increase at any given quantity.

If everyone expects that the football team will have a great season, the quantity demanded for tickets will increase, which will increase their price. But the suppliers will also hold to their tickets until a day or two before the games to increase expectations and fans' anxieties. That way the price will increase even more, and they will make a higher profit.

8 0
3 years ago
Other questions:
  • Which of the following BEST defines absolute advantage in terms of international trade?
    15·1 answer
  • When evaluating where you want to attend college, it is good idea to narrow down your choices to?
    7·1 answer
  • What are the 3 techniques used for running a busines
    11·1 answer
  • Dave and his partner are studying the strengths and weaknesses of their construction business, Ajax Construction, as well as res
    8·1 answer
  • An investor set up his own IRA several years ago and has now decided to get professional advice from an investment adviser. When
    12·1 answer
  • Delmar Inc. uses a standard cost system. Labor standards are 2.0 hours per widget at $8.80 per hour. During August, Delmar Inc.
    13·1 answer
  • A 22-year old college student has been promised a $1 million check at this 50thbirthday (28years from today). What is the presen
    11·1 answer
  • In the 2008 global financial crisis, many investors considered the US economy a safe place to move their assets What is the pred
    6·1 answer
  • The economic survey 2018 suggest that the psychological biases
    10·1 answer
  • 20 points easy?………………………
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!